If you’re over 60, you’ve likely spent decades building a life full of memories and hard-earned equity in your home. Now, as you look ahead to retirement, the big question is: “Will I have enough to live a ‘comfortable retirement’?”
But what is a good life for Australian seniors?
According to the Association of Superannuation Funds of Australia (ASFA), a “good life” in Australia means having enough money in retirement to comfortably cover your living expenses.
Here’s the simple breakdown:
- Comfortable Retirement Lifestyle:
- For Couples (Aged 65–84): About $73,077 per year
- For Singles (Aged 65–84): About $51,805 per year
- Retirement Savings Needed at Age 67 for a Comfortable Life:
- Couples: Around $690,000
- Singles: Around $595,000
- Modest Lifestyle (Lower Spending):
- For Couples: Around $47,470 per year
- For Singles: Around $32,897 per year
- Retirement Savings for Modest Lifestyle: Approximately $100,000 for both couples and singles
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For those embracing a comfortable retirement, everyday life is about enjoying the finer things in life such as:
- Enjoy frequent dining out at favourite restaurants and exploring cultural events such as theatre shows and art exhibitions.
- Plan regular travel, both around Australia and overseas, embracing spontaneous adventures and luxurious experiences.
- Indulge in extra comforts—whether it’s joining special interest clubs, taking up new hobbies, or investing in premium leisure activities that add extra enrichment to your golden years.
On the flip side, a modest lifestyle focuses on essential living with a more budget-conscious approach.
- Focus on essential needs with a cost-effective approach—regular home-cooked meals, community gatherings, and budget-friendly local outings.
- Prioritise financial security by covering all necessary living expenses, while still allowing for occasional treats and small indulgences.
- Embrace a simpler lifestyle that supports a balanced, sustainable approach to enjoying retirement without overspending.
Ultimately, the choice between a comfortable and modest lifestyle boils down to personal preferences and financial goals.
A comfortable retirement lifestyle offers a bit more wiggle room for luxuries and spontaneous adventures, while a modest lifestyle emphasises prudence and simplicity. Both paths are designed to help you enjoy a fulfilling, secure retirement—whether you’re all about living it up or keeping things straightforward and sustainable.
How a Reverse Mortgage Fits Into Your Retirement Plan
A Reverse Mortgage is a clever financial tool that lets you tap into the equity in your home without having to pack up and move out. Here’s how it can work for you:
Unlock Your Home’s Hidden Value
Over the years, your home has likely appreciated in value. A Reverse Mortgage lets you convert some of that value into a lump sum or regular income, which can help you meet or even exceed those ASFA benchmarks. If your savings are a bit short of that $690,000 or $595,000 comfortable mark, a Reverse Mortgage can bridge the gap without forcing you off your beloved home.
Keep Living the Life You Love
Whether it’s a cheeky weekend getaway along the Great Ocean Road, a few extra barbies with friends, or simply the peace of mind that comes with financial security, a Reverse Mortgage can supplement your income and maintain the lifestyle you’ve worked so hard to build.
A Cushion for Life’s Curveballs
Unexpected expenses can crop up at any time—a surprise home repair or an extra medical expense, for example. A Reverse Mortgage provides an extra financial safety net, ensuring that you’re prepared for any twists and turns that come your way.
[ ALSO READ: ‘I Love My Home’: Why over 55’s are reluctant downsizers ]
Points to Ponder
Before you jump into a Reverse Mortgage, have a chat with a trusted financial adviser. Consider these factors:
- Impact on Your Estate: Accessing your home equity means that the remaining value of your home might be lower when it comes time to pass it on.
- Fees and Interest: Like any loan, there are costs involved, so make sure you understand the fee structure and interest accumulation.
- Government Benefits: Check how drawing on your home equity might affect your Age Pension or other benefits.
Wrapping It Up
Retirement should be a time to kick back, enjoy life’s little pleasures, and not worry about every dollar.
The ASFA Retirement Standard gives you a clear picture of what a comfortable or modest lifestyle might cost, and a Reverse Mortgage offers a smart way to unlock your home’s hidden value to help meet those costs.
So, if you’re planning your retirement, consider all the tools available to you. A Reverse Mortgage might be just the financial mate you need to ensure your golden years are as carefree and enjoyable as a sunny day at Bondi Beach.
Want to learn more about Reverse Mortgage? Download your FREE Reverse Mortgage GUIDE.
Ready to Apply? You can now check your eligibility online or call Seniors First on 1300 745 745.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before you make any decision.
